This week, two different sets of consumer protection bills saw action in the Michigan Senate, both of which were opposed by the Chamber.
On Tuesday, June 10, the Senate voted along party lines to send SB 134 to the House. The legislation aims to broaden the definition of “trade and commerce” by including business activities that deliver goods and services to small businesses and nonprofit organizations. This bill empowers the Department of Attorney General to initiate class action lawsuits against offenders, seeking either actual damages or $250, whichever amount is higher, for everyone involved in the case. Additionally, a Consumer Protection and Antitrust Revolving Enforcement and Education Fund would be established, financed by a portion of attorney fees and revenue from legal actions against offenders.
SB 134 will open countless businesses up to more litigation, hitting every industry in Michigan. The current Consumer Protection Act provides safety nets for consumers, whereas SB 134 just provides an avenue for serial litigators to pursue costly court cases.
On Wednesday, June 11, the Senate Committee on Finance, Insurance, and Consumer Protection heard testimony and voted out SBs 359-364, which would create the Personal Data Privacy Act. SB 359 aims to establish consumer rights regarding their personal data. It also mandates that entities collecting and processing this data, including businesses, obtain consent from consumers before handling their information, among other stipulations. The rest of the bills propose amendments to the state’s identity theft act. Overall, these bills will require both private and government organizations to implement security measures to protect personal data.
This package aligns Michigan with California’s privacy laws, which require just about every business to receive consent from its customers before collecting any information on them. Many of the provisions are nearly impossible to comply with, lacking flexibility on the business side regarding how information on customers can be used.
The Chamber will continue to oppose these two sets of consumer protection packages.